US economic growth improves to 2 pct. rate in Q3

WASHINGTON (AP) -- The U.S. economy expanded at a slightly faster 2 percent annual rate from July through September, buoyed by an uptick in consumer spending and a burst of government spending.
Growth improved from the 1.3 percent rate in the April-June quarter, the Commerce Department said Friday.
The pickup in growth may help President Barack Obama's message that the economy is improving. Still, growth remains too weak to rapidly boost hiring. And the 1.74 percent rate for 2012 so far trails last year's 1.8 percent growth, a point GOP nominee Mitt Romney will emphasize.
The report is the last snapshot of economic growth before Americans choose a president in 11 days.
The economy improved because consumer spending rose 2 percent in the July-September quarter, up from 1.5 percent in the second quarter. Spending on homebuilding and renovations increased more than 14 percent. And federal government spending expanded sharply on the largest increase in defense spending in more than three years.
Growth was held back by the first drop in exports in more than three years and flat business investment in equipment and software.
The economy was also slowed by the severe drought this summer in the Midwest. That sharply cut agriculture stockpiles and reduced growth by nearly a half-point.
The government's report covers gross domestic product. GDP measures the nation's total output of goods and services — from restaurant meals and haircuts to airplanes, appliances and highways.
The first of three estimates of growth for the July-September quarter sketched a picture that's been familiar all year: The economy is growing at a tepid rate, slowed by high unemployment and corporate anxiety over an unresolved budget crisis and a slowing global economy.
While growth remains modest, the factors supporting the economy have changed. Exports and business investment drove growth for most of the recovery, but are now fading. Meanwhile, consumer spending has ticked up and housing is adding to growth after a six-year slump.
Consumer spending drives nearly 70 percent of economic activity.
Businesses have grown more cautious since spring, in part because customer demand has remained modest and exports have declined as the global economy has slowed.
Many companies worry that their overseas sales could dampen further if recession spreads throughout Europe and growth slows further in China, India and other developing countries. Businesses also fear the tax increases and government spending cuts that will kick in next year if Congress doesn't reach a budget deal.
Since the recovery from the Great Recession began in June 2009, the U.S. economy has grown at the slowest rate of any recovery in the post-World War II period. And economists think growth will remain sluggish at least through the first half of 2013. Some analysts believe the economy will start to pick up in the second half of next year.

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Has Obama Been Good for Millionaires?

The question of whether Americans are better off than they were four years ago depends, of course, on the American.
For the 12 million unemployed, the answer is most certainly no.
But for many of America's millionaires, the answer may be more affirmative.
A new study from WealthInsight, the London-based wealth-research and data firm (and yes, they are non-partisan), showed that the United States added 1.1 million millionaires between Jan. 1, 2009 and the end of 2011, the latest period measured. There were 5.1 million millionaires in America at the end of 2011, compared with around 4 million at the end of 2008.
That works out to more than 1,000 millionaires a day under the Obama administration. (They defined millionaires as people with total net worth of $1 million or more, excluding primary residence).
(Read more: Rich Will Spend More Under Romney: Poll)
"It's true that Obama has been good for millionaires, at least in absolute terms," said Andrew Amoils, analyst at WealthInsight. "He certainly hasn't been bad for millionaires."
Amoils said that quantitative easing and financial bailouts especially helped the finance sector, which accounts for the largest share of millionaires. It also helped that markets recovered in 2009.
The timeframe is worth noting. Measured against the 2007 peak, when 5.27 million Americans had a net worth of at least $1 million, the nation lost 165,360 millionaires. Their combined wealth is down six percent, to $18.8 trillion from a peak of more than $20 trillion in 2007.
We don't know how 2012 will turn out, though if stock markets continue to strengthen, the millionaire count for 2012 is likely to increase. Wealth Insight says the number of millionaires in America will grow to more than six million by 2016, and their combined fortunes will jump 25 percent over the same period.
(Read more: Millionaires Give Nine Percent of Income to Charity)
Where did all the millionaires come from between 2008 and 2011?
Mainly from retail, tech and finance -- and in both blue and red states.
Of the sectors adding the largest number of people worth $30 million or more, the retail, fashion, and luxury goods sector ranked first. That was followed by energy and utilities, then tech, telecoms and finance. Transportation and construction saw the biggest drops.
The number of people worth $30 million or more grew 26 percent in Connecticut since 2008, 20 percent in Kansas, 12 percent in Michigan, showing that the wealth creation was nationwide.

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Video games and shooting: Is the NRA right?

After a week of silence following the Sandy Hook school shooting that killed 20 first graders and six staff in Newtown, Conn., the National Rifle Association blamed the entertainment industry – specifically the producers of violent video games for inciting what has become a pattern of gun violence in the United States.
In describing the industry, NRA Vice President Wayne LaPierre said, “There exists in this country a callous, corrupt and corrupting shadow industry that sells, and sows, violence against its own people.”
Mr. LaPierre faulted the news media for failing to report on “vicious, violent video games” such as “Grand Theft Auto,” “Mortal Kombat,” and “Splatterhouse” as egregious examples. He also singled out “Kindergarten Killer,” a free, fairly obscure online game.
“How come my research department could find it and all of yours either couldn’t or didn’t want anyone to know you had found it?” he asked reporters.
Recommended: Second Amendment Quiz
Most academic research, as well as studies by the FBI and the US Secret Service, examining the link between violent video games and incident of violence does not support the gun lobby’s charge.
For example, a 2008 report by researchers at Harvard Medical School and Massachusetts General Hospital funded by the US Department of Justice found that violent video games may increase bullying or physical fighting in schools, but not mass gun violence.
“It's clear that the ‘big fears’ bandied about in the press – that violent video games make children significantly more violent in the real world; that they will engage in the illegal, immoral, sexist and violent acts they see in some of these games – are not supported by the current research, at least in such a simplistic form,” the report states.
Joan Saab, director of the visual and cultural studies program at the University of Rochester in New York, says the gaming industry should share in the blame for promoting military weaponry to young people, but adds that the popularity of such games reflect the “larger culture we live in, which is heavily militarized,” in the midst of lengthy combat operations in Iraq and Afghanistan.
Ms. Saab says that the NRA’s call for armed guards in schools would make that kind of military culture more pervasive for children.
“If there are more armed guards in schools, kids are exposed to more guns. That’s when fantasy and reality aren’t blurred. When there are guns in schools, it becomes real life and the day-to-day environment becomes more dangerous than the game,” she says. In Newtown, as in Aurora, Colo. and the sites of other mass shootings, the gunman was outfitted in military-style dress.
By blaming video games for gun violence, the NRA also puts itself in a vulnerable position because, as Mother Jones reports, the company partnered with gaming producer Cave Entertainment in 2006 for “NRA Gun Club,” a PlayStation 2 game that allows users to fire over 100 different brand-name handguns.
LaPierre did not specify if Congress should move forward in regulating the gaming industry, perhaps because previous attempts were not successful.
A US Supreme Court ruling in 2011 struck down a California law that made it a crime to sell or rent what it classified as violent video games to minors. The ruling said the law, signed by then-Gov. Arnold Schwarzenegger (R) in 2005, violates First Amendment protections.
In the wake of Sandy Hook, Senate Commerce Committee Chairman Jay Rockefeller introduced a bill that calls for the National Academy of Sciences to examine the possible links between violent video games and violent incidents caused by children.
Overall, gun-based video games do not wholly represent total gaming industry sales, according to data from VGChartz, a UK-based research firm that tracks gaming sales. In 2011, for example, just seven of the top 20 best-selling games in the US involve warfare simulation. The other titles – “Just Dance 3,” “Kinect Adventures!” “New Super Mario Bros. Wii,” “Madden NFL 12,” and “Pokemon Black/White” – are designed around sports, dance, and children’s cartoon characters.
All of the games LaPierre mentions are more than 15 years old, with some dating back to the 1980s, with their popularity waning. For example, total unit sales in the US for the “Mortal Kombat” franchise dropped 70 percent in 2012, compared to the previous year total. The game debuted in 1992.
Gaming experts say that the majority of the games LaPierre cited do not portray gun violence – “Mortal Kombat” involves hand-to-hand combat, for example. They say they do not understand why he did not single out “first person shooter” games such as blockbuster franchises like the “Call of Duty” series, which is based on simulated gun action and is considered one of the most hyper-violent on the market. In fact, according to news reports, the game was also a favorite of Adam Lanza, the Newtown gunman who spent hours at home playing it.
“Some of those games [LaPierre mentions] are older than the [Newtown] shooter,” who was 20, says Christopher Grant, editor-in-chief of Polygon.com, an online site based in New York City that covers gaming news and trends. “I have no idea why he chose them. My theory is he didn’t want to pick anything too modern [such as ‘Call of Duty’ or ‘Doom’] that might overlap unfavorably with something their own members might enjoy.”
“Call of Duty” is known as a favorite of the military and is often credited for driving up recruitment. Activision Blizzard, the company behind “Call of Duty,” has donated thousands of copies to the US Navy; the company also created a non-profit foundation to help returning US military veterans.
According to the NPD Group, a global market research firm, retail gaming sales in the US plummeted 20 percent in the first eight months of 2012 compared to the same time period the previous year, a trend that follows years of declining sales. Between 2008 and 2011, total sales of industry software and hardware dropped 20.5 percent. According to the gaming industry website Gamasutra, 2012 sales are expected to be the lowest since 2006.
The sales drop is representative of major shifts in the gaming industry, which is slowly moving away from console-based games to those that are played via smartphones, digital tablets, and online through social networks.
The change has produced a new type of gamer: They are generally older, more ethnically and economically diverse, and they feed their gaming appetite in smaller bites and on-the-go, as opposed to the traditional gamer profile of a few years ago, which tended to be young males playing for hours in one sitting.

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Atheist Kids and Bullying: Just an Xbox and a Football Game Away From Redemption

I’ll never forget the year my eight-year-old daughter came home from school saying she got in trouble for going to the bathroom.
“I was afraid,” she said, “that the devil was coming out of the mirror to get me.... I wanted Aya to stay with me until I was done.”
Like any parent, I sat her down and asked her to tell me why she would ever think a mirror could spawn something as terrifying as that.
“Susie told me because I didn’t believe in god, the devil was coming to take my soul.”
MORE: Bullying the Bullies: What to Do to Save the Next Amanda Todd
“Susie” as we’ll call her, was a fellow eight-year-old student at my daughter’s Catholic school. Susie attended church every Sunday with her family—the same church that many of her classmates to this day all go to.
Was my daughter being bullied for being an atheist? I quickly dismissed it. After all, these were only eight-year-old girls, and it wasn’t like we talked about god hating with our morning cereal.
I soon noticed a new pattern of my daughter: She wouldn’t enter a bathroom without a friend or parent and began wetting the bed at night for fear of our extensive collection of bathroom mirrors pulling her into almighty hell at 2 a.m.
Sure enough, the religious eight-year-old was still pressuring my daughter to consider her morality, spirituality and reason for living daily in the school bathroom.
“When the child goes to school, and encounters for the first time other kids who don’t believe the same thing, whether it’s no belief or a different belief system, that can rock a kid’s world.”
I got on the phone and made sure the principal was aware of the bullying, that the child was reported and that my daughter would hopefully make the choice not to play with her anymore. The school thought I was a little crazy. Bullying was getting punched in the stomach in a dark place behind the school, not a little girl being taunted for not believing she was going to have life eternal. This was a new place they were afraid to gain control of. The principal, a former nun, kept a tight lip.
According to the American Society for the Prevention of Cruelty to Children, every day “an estimated 160,000 students in the U.S. refuse to go to school because they dread the physical and verbal aggression of their peers. Many more attend school in a chronic state of anxiety and depression.”
Courtney Campbell, Professor of Religion and Culture at Oregon State University, says he encountered the same case with his own children who were told at a very early age by some of their “friends” that they were “going to hell.” Though there were no physical beatings, the “psychic bullying” may have been worse.
“There is a phenomenon of religious-bullying at an early age, though in my own view/experience with raising my kids, it’s less of an issue than lookism [obese kids], size [‘big’ bullies], or gender, or clothes, or any of a number of things that kids do to manifest power over others,” says Campbell.
He points out that in most conservative/evangelical/fundamentalist Christian traditions, kids are taught at a very early age in their Sunday schools or summer bible camps that there’s only one path to happiness and salvation. That teaching, absorbed at a young age, is on its own rather threatening to the child.
“When the child goes to school, and encounters for the first time other kids who don’t believe the same thing, whether it’s no belief or a different belief system, that can rock a kid’s world,” Campbell adds.
Blame it on fear, maybe a calling out of one’s most sacred and learned family beleifs, but this form of push and shove is only getting more sophisticated.
Rachel Wagner, Associate Professor for the Department of Philosophy and Religion at Ithaca College and author of Godwired: Religion, Ritual and Virtual Reality, says we are overlooking a major player of the religious bullying model—video games.
“If we compare video games to rituals as similar kinds of interactive experiences that are meant to shape how we see ourselves and others in the world, then we can argue something more basic—that video games (like rituals) can teach people habits of encounter—and offer youth deeply problematic models of encounter with difference,” says Wagner, who adds that in her next book, she’ll argue that religion has always had the ability to be “played” like a game, a religious encounter she coins “shooter religion.”
While Wagner admits it’s very important to remember that all world religions also have “deep and abiding practices urging compassion, understanding, tolerance, and social justice,” in today’s media-soaked society, feeling the need to retreat into a simpler world where people can be reduced to camps can be terribly tempting.
Stacy Pershall, author of Loud in the House of Myself: Memoir of a Strange Girl, says that growing up in Prairie Grove, Arkansas, in an athletics-focused, Christian bible belt, she was used to being surrounded by “Jesus talk.”
Pershall, who was bullied for being a “strange girl,” when young, unathletic and atheist to boot, now works and empowers high school and college students as a writing teacher and mental health speaker.
“Although it still makes my heart pound a little to stand in front of a crowd and admit that I don’t believe in god (as I recently did at Catholic University in D.C.), somebody needs to do it. I get to be the adult who says to kids, ‘I’m an atheist, I have morals, I have friends, I’m happy, and I care about how you feel.’ That’s a wonderful, powerful thing. I get to tell bullied kids who might be considering suicide that they’re not alone, and that they have kindred spirits. It’s what the Flying Spaghetti Monster put me on Earth to do.

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The Violent Video Games the NRA Didn't Blame

In a news conference today (Dec. 21), National Rifle Association Executive Vice President and Chief Executive Officer Wayne LaPierre blamed video-game studio and publishers for helping to create "genuine monsters" like Adam Lanza, the 20-year-old who killed 20 first-graders with an assault rifle in Newtown, Conn., last week.
"There exists in this country, sadly, a callous, corrupt and corrupting shadow industry that sells and stows violence against its own people," LaPierre said.
LaPierre gave five examples of "vicious, violent video games": "Bulletstorm," "Grand Theft Auto," "Mortal Kombat" and "Splatterhouse," plus the obscure Flash-based online game "Kindergarten Killer."
But there's one kind of violent video game LaPierre didn't mention at all. Those would be military-themed shooters, such as the best-selling "Call of Duty" and "Medal of Honor" series, as well as the Pentagon-produced "America's Army."
Unlike the games LaPierre did name, the military shooters exalt American soldiers, sailors, airmen and Marines, and the targets being shot at are Nazis, Russians, terrorists and zombies.
Retired service members serve as paid consultants to the game makers, who strive to make the weaponry depicted as true-to-life as possible. Active-duty members of Navy SEAL Team Six were punished last month for consulting on "Medal of Honor: Warfighter."
And, as mentioned, the U.S. Army produces and distributes "America's Army" itself as a recruiting and training tool.
Yet such games are not without controversy. "Call of Duty: Modern Warfare 2," released in 2009, contains an optional level called "No Russian" which realistically depicts a massacre of unarmed civilians in a Russian airport.
In the "No Russian" level, the playable character is an undercover CIA agent who has infiltrated a terrorist group and must take part in the massacre. The player can shoot and kill non-playable civilian characters, although no points are awarded for doing so and no points are deducted for not firing a weapon.
Anders Behring Breivik, the Norwegian spree killer who shot 69 people, mostly teenagers, in July 2011, later testified at his own trial that he used "Call of Duty: Modern Warfare 2" to train himself to use holographic weapon sights.
So why didn't LaPierre mention the single game that has been conclusively linked to an incident of mass killing, not to mention an entire category that trains players in the proper handling and use of military-grade weapons?

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Instagram gains users in December despite recent uproar as Zynga gets pecked to death by rivals

Zynga (ZNGA), the Facebook (FB) app behemoth, still reigns supreme on its most important platform. But the erosion of its dominant position continues as smaller rivals keep chipping away at its market share. On December 26, Zynga-owned Facebook applications had 267 million Monthly Active Users, down 20 million in two weeks. Far behind it followed Microsoft (MSFT) with 70 million MAU, King.com with 65 million MAU and Instagram with 43 million MAU.
[More from BGR: Samsung looks to address its biggest weakness in 2013]
But whereas Zynga lost nearly 7% of its Monthly Active Users in the two-week run-up to Christmas, Microsoft managed to inch up by 700,000 users, King.com by 600,000 users and Instagram by 2.1 million users.
[More from BGR: New purported BlackBerry Z10 specs emerge: 1.5GHz processor, 2GB RAM, 8MP camera]
Of course, the Facebook crackdown on aggressive customer acquisition techniques has limited the growth of all third-party app developers. But the most important of Zynga’s smaller rivals have been able to avoid the kind of MAU erosion that is now plaguing the Facebook app champion.
What really pops out from Christmas Facebook app trends is the way Instagram has been able to ride a wave of negative publicity to perky 5% monthly user growth over the past two weeks.
The tsunami of wrath and sarcasm unleashed on Twitter has not reversed Instagram’s momentum. It might even be possible that floating an outrageous-sounding privacy policy and then quickly reversing it could have simply increased Instagram’s brand recognition and piqued consumer interest among those who are not deeply involved in app trends.
This certainly adds some piquancy to the breathless commentary about Instagram’s “fatal blunder” and “possibly irreversible damage.”

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Nintendo’s Wii U wobbles as sales sink

According to Famitsu, Nintendo’s (NTDOY) portable 3DS console continued to see huge success during the week ahead of Christmas. It racked up sales of 433,000 units in Japan, up from 333,000 units in the prior week. But weirdly enough, the brand new and heavily promoted Wii U home console wobbled badly as its weekly sales slipped to 122,000 units from 130,000 units in the previous week. This may have been the biggest week in Japanese console market in 2012, so the stakes were high.
[More from BGR: Google names 12 best Android apps of 2012]
To put Wii U performance in context, the old PSP portable console sold 58,000 units in Japan during the same week. It is not an encouraging sign that the more than half-decade old PSP (which was displaced by the PlayStation Vita a year ago) managed to sell nearly half as many units as the brand new Wii U during the holidays. Of course, PS Vita continues to miss sales expectations dramatically — it sold only 19,000 units last week, barely more than a quarter of what its predecessor managed.
[More from BGR: Smartphones will replace keys on upcoming Hyundai cars]
Wii U performance may improve dramatically once compelling titles arrive. But during December, it did have “New Super Mario Brothers” and “Nintendo Land” to boost it in Japan. This clearly wasn’t enough. The aging PlayStation 3 sold only 30,000 units and Microsoft’s (MSFT) Xbox 360 barely cleared a thousand units, so the Wii U should have had a clear shot at strong sales performance in the Japanese home console market.
Overall, Japanese game console sales were down sharply from the week ahead of Christmas in 2011. The 3DS is a big hit in 2012 but instead of buoying the entire console market, it seems to be sapping energy from the Wii U and PS Vita.
It’s still early days for the Wii U, but Nintendo has probably started sweating a bit.

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Avis buying Zipcar in deal worth nearly $500M

 Avis is leaping into the car-sharing service business by buying Zipcar for $491.2 million, aiming to capture a new type of customer and technology that will vastly expand its car rental options.
Car sharing has become a popular alternative to traditional rentals in metropolitan areas and on college campuses, allowing members to get a vehicle for an hour or two for short trips instead of renting a car for a day or using mass transit. The segment has been growing while traditional car rentals have struggled in the current slow-growth economy.
Zipcar, which was founded in 2000, has more than 760,000 members, triple what it had in 2008. It went public in 2011 and 2012 is expected to be its first-ever profitable year. Avis Budget Group Inc. is the third-largest U.S. rental car company, behind Enterprise Rent-a-Car and Hertz Global Holdings Inc.
"I've been somewhat dismissive of car sharing in the past but what I've come to realize is that car sharing, particularly on the scale that Zipcar has achieved and will achieve, is complementary to our traditional business," Avis' Chairman and CEO Ron Nelson said in a conference call after the deal was announced.
Nelson said the acquisition means Avis will now be able to reach younger, more tech-savvy consumers that prefer sharing services.
Zipcar parks cars throughout cities and college campuses, which allows renters to avoid waiting in lines at traditional car rental counters. Some areas provide reserved parking for the cars, which can be located online or through the companies' smartphone applications. That technology was attractive to Avis, which hopes to expand Zipcar's vast technological capabilities to its own business.
The car-sharing companies pay for fuel and insurance, costs not included in standard car rentals. Although the hourly rental options are quicker and cheaper than renting a car by the day, Zipcar and other car-sharing services are generally more expensive for rentals longer than 24 hours.
To join Zipcar, members pay a $25 application fee and $50 a year. Rates run from $7.50 an hour and include gas, insurance and 180 miles a day.
The acquisition will help Avis better compete with Enterprise and Hertz, which have their own smaller car-sharing services. And having access to Avis' fleet of cars will help Zipcar meet high demand on weekends when most people take a trip to the grocery store or run other errands.
Avis estimates it will save about $50 to $70 million a year through combining the two businesses into one.
Avis Budget Group Inc. will pay $12.25 per share, which is a 49 percent premium to Zipcar's closing price on Friday. The stock lost more than half its value in early 2012 year as its results and outlook spooked Wall Street. But late last year, the stock began to recover as the company saw growth in members and revenue. And on Wednesday, the stock soared 48 percent to close at $12.18.
The boards of both companies unanimously approved the buyout. If Zipcar shareholders approve the deal, it's expected to close in the spring.
Avis, which is based in Parsippany, N.J., said it expects certain members of Zipcar management, including Chairman and CEO Scott Griffith and President and Chief Operating Officer Mark Norman, to help run its day-to-day operations.
Avis also maintained its 2012 adjusted earnings forecast Monday of about $2.35 to $2.45 per share on revenue of approximately $7.3 billion. Analysts predict earnings of $2.42 per share on revenue of $7.3 billion.
Avis shares jumped 4.8 percent to close at $20.77, after earlier hitting a 52-week high of $21.10.

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Microsoft acquires start-up id8: source

 Microsoft Corp bought start-up id8 Group R2 Studios Inc as it looks to expand further in technology focused on the home and entertainment, a person familiar with the situation said on Wednesday.
id8 Group R2 Studios was started in 2011 by Silicon Valley entrepreneur and investor Blake Krikorian. It recently launched a Google Android application to allow users to control home heating and lighting systems from smartphones.
Krikorian's Sling Media - which was sold to EchoStar Communications in 2007 - made the "Slingbox" for watching TV on computers.
Krikorian will join Microsoft with a small team, according to the Wall Street Journal, which reported the acquisition earlier on Wednesday. Microsoft also purchased some patents owned by the start-up related to controlling electronic devices, the newspaper added.
Krikorian and a Microsoft spokesman declined to comment.
Krikorian resigned from Amazon.com Inc's board in late December after about a year and a half as a director at the company, the Internet's largest retailer.

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Boehner agrees to Sandy aid vote on Friday

WASHINGTON (AP) — Under intense pressure from angry Republicans, House Speaker John Boehner agreed Wednesday to a vote this week on aid for Superstorm Sandy recovery.
The speaker will schedule a vote Friday for $9 billion for the national flood insurance program and another on Jan. 15 for a remaining $51 billion in the package, Republican Rep. Peter King of New York said after emerging from a meeting with Boehner and GOP lawmakers from New York and New Jersey. The votes will be taken by the new Congress that will be sworn in Thursday.
King left the session with Boehner without the anger that led him to rip into the speaker Tuesday night.
"It was a very positive meeting," King said, adding that Boehner, R-Ohio, assured the lawmakers present that the money from the two House votes would roughly equal the $60 billion package of aid that passed the Senate.
Since the votes will be taken in the new Congress, the Senate also will have to approve the legislation. If the House, as expected, approves the $9 billion flood insurance proposal, the Senate plans to move quickly in hopes of approving the aid on a voice vote Friday. The flood insurance money will help pay for claims by home and business owners with coverage.
Sandy was the most costly natural disaster since Hurricane Katrina in 2005 and one of the worst storms ever in the Northeast.
"Getting critical aid to the victims of Hurricane Sandy should be the first priority in the new Congress, and that was reaffirmed today with members of the New York and New Jersey delegations," Boehner said in a joint statement with House Majority Leader Eric Cantor, R-Va.
Boehner's decision Tuesday night to cancel an expected vote on Sandy aid before Congress ends its current session provoked a firestorm of criticism from New York, New Jersey and adjacent states where the money will go, including many lawmakers in his own party.
According to King, Boehner explained that after the contentious vote to avoid major tax increases and spending cuts called the "fiscal cliff," Boehner didn't think it was the right time to schedule the vote before the current Congress went out of business.
"What's done is done. The end result will be New York, New Jersey and Connecticut will receive the funding they deserve. We made our position clear last night. That's in the past," King said.
Rep. Chris Smith, R-N.J., added, "We do believe we have an iron clad commitment."
The Senate approved a $60.4 billion measure Friday to help with recovery from the October storm that devastated parts of New York, New Jersey and nearby states. The House Appropriations Committee has drafted a smaller, $27 billion measure for immediate recovery needs and a second amendment for $33 billion to meet longer-term needs.
The $9 billion in flood insurance money to be voted on Friday was originally in the $27 billion measure. The votes on Jan. 15 will be for $18 billion in immediate assistance and $33 billion for longer-term projects, including projects to protect against future storms, King said.
Much of the money in the proposals is for immediate help for victims and other recovery and rebuilding efforts. The aid is intended to help states rebuild public infrastructure such as roads and tunnels and help thousands of people displaced from their homes.
Some $5.4 billion is for the Federal Emergency Management Agency's disaster relief fund, $5.4 billion is to help transit agencies in New York and New Jersey rebuild and another $3.9 billion is for the Housing and Urban Development Department's development fund to repair hospitals, utilities and small businesses.
New Jersey Gov. Chris Christie, a Republican, was among those sharply criticizing Boehner before the speaker changed course.
Christie said he was frustrated after Boehner withdrew the bill Tuesday night and tried to call him four times that night, but none of the calls were returned. Christie complained about the "toxic internal politics" of the House majority. Christie said he had worked hard to persuade House members to support Sandy aid, and was given assurances by GOP leaders that the bill would be voted on before Thursday.
"There is no reason for me at the moment to believe anything they tell me," Christie said before Boehner announced there would be votes this month.
King had branded Boehner's initial decision to pull the bill a "cruel knife in the back" to New York and New Jersey.
King was among an angry chorus of New York and New Jersey lawmakers from both parties who blasted Boehner, with some saying his move was a "betrayal."
In considering the Sandy aid package, the speaker was caught between conservative lawmakers who want to offset any increase in spending and Northeast and mid-Atlantic lawmakers determined to help their states recover more than two months after the storm hit.
The criticism of Boehner on the House floor was personal at times, and reflected in part the frustration among the rank-and-file over the decision to press ahead with a vote on the fiscal cliff deal engineered by the White House and Senate GOP leader Mitch McConnell. Boehner had been struggling with conservatives who complained that the economic package didn't include enough spending cuts.
Reps. Michael Grimm, a Republican, and Jerrold Nadler, a Democrat, said in angry House floor remarks that while they did not agree on much, Boehner's decision amounted to a "betrayal" and a crushing blow to states battered by the storm.
President Barack Obama also called for an immediate House vote. Sen. Kirsten Gillibrand, D-N.Y., raised the political temperature even more. She said Boehner should come to Staten Island and the Rockaways to explain his decision to families whose homes and businesses were destroyed. "But I doubt he has the dignity nor the guts to do it," Gillibrand said.
Obama, meanwhile, called for House Republicans to vote on the Sandy aid "without delay for our fellow Americans." The president said in a written statement that many people in New York, New Jersey and Connecticut are trying to recover from the storm and need "immediate support with the bulk of winter still in front of us."
The White House said Obama spoke Wednesday with Christie about the importance of the disaster aid bill, and that the president's staff was in touch with New York Gov. Andrew Cuomo's team too as Obama lobbied for House action.
Christie and Cuomo, a Democrat, issued a joint statement, saying, "The fact that days continue to go by while people suffer, families are out of their homes, and men and women remain jobless and struggling during these harsh winter months is a dereliction of duty."
Rep. Frank Pallone Jr., D-N.J., blamed tea party lawmakers and conservatives who were reluctant to approve new spending soon after the debate over the "fiscal cliff" budget issues for the sudden move by GOP leaders. He said the move was "deplorable."
More than $2 billion in federal funds has been spent so far on relief efforts for 11 states and the District of Columbia struck by the storm, one of the worst ever to hit the Northeast. The Federal Emergency Management Agency's disaster relief fund still has about $4.3 billion, enough to pay for recovery efforts into early spring, according to officials. The unspent FEMA money can only be used for emergency services, said Pallone.
New York, New Jersey, Connecticut, District of Columbia, West Virginia, Virginia, Maryland, New Hampshire, Delaware, Rhode Island, Pennsylvania and Massachusetts are receiving federal FEMA aid.
Sandy was blamed for at least 120 deaths and battered coastline areas from North Carolina to Maine. New York, New Jersey and Connecticut were the hardest hit states and suffered high winds, flooding and storm surges. The storm damaged or destroyed more than 72,000 homes and businesses in New Jersey. In New York, 305,000 housing units were damaged or destroyed and more than 265,000 businesses were affected.

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